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Abstract

While the world economy continues to be
unsettled, economic growth in Kazakhstan has been solid.
Strong domestic demand, coupled with increased oil output
and favorable weather conditions, is likely to boost
economic growth. An expansion of credit was the key driver
of growth in private consumption and investment activity in
2013. Income growth in the country had a positive impact on
poverty indicators, with prosperity shared broadly. Prudent
macroeconomic policy has helped the economic performance.
Prospects of additional oil output with Kashagan coming on
stream will help boost economic activity in the coming years
and increase Kazakhstan s vulnerability to external shocks
unless the country succeeds in diversifying its endowments
from natural resources to stronger institutions and higher
quality human capital. In his recent speech on the strategic
vision Kazakhstan-2050, the President of Kazakhstan
highlighted the need to diversify the endowments of the
country to achieve its development objectives. He
reiterated the key development priorities for the country to
become one of the top 30 developed countries by 2050. Trade
policy will remain a central instrument to help the country
integrate into the global economy, but Kazakhstan will face
a complex trade policy environment in the medium-term.